HomeMy WebLinkAbout97-17 Levy Annual Assessment for Fiscal Year 1997-98; Hotels and MotelsORDINANCE NO. 97- 11
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, TO LEVY AN ANNUAL
ASSESSMENT FOR FISCAL YEAR 1997-98 FOR A
BUSINESS IMPROVEMENT AREA FOR CITY OF COSTA
MESA HOTELS AND MOTELS.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
ORDAIN AS FOLLOWS.
Section 1. The City Council of the City of Costa Mesa hereby finds and
declares as follows:
WHEREAS, the California Legislature in adopting the Parking and Business
Improvement Area Law of 1989 (Streets and Highways Code section 36500 at
seq.) found that cities are authorized to levy assessments on businesses in order to
promote economic revitalization and tourism, create jobs, attract new businesses
and prevent erosion of business districts;
WHEREAS, the California Legislature found that cities are authorized to levy
assessments on businesses which benefit from those improvements and activities;
WHEREAS, the purpose of the business improvement area is to fund
activities to promote tourism and related tourist events which benefit the hotel and
motel businesses within the City of Costa Mesa;
WHEREAS, the major hotel and motel businesses within the City of Costa
Mesa have requested that City Council commence proceedings under the Parking
and Business Improvement Area law of 1989 to establish a hotel and motel
business benefit area within the City of Costa Mesa and levy a special assessment
to promote tourism;
WHEREAS, on July 5, 1995, by Ordinance No. 95-9, City Council adopted a
business improvement area known as the Costa Mesa Tourism & Promotion
Council; and
WHEREAS, on May 5, 1997, City Council adopted Resolution No. 97-40
entitled "A Resolution of the City Council of the City of Costa Mesa, California, on
the Intention to Levy an Annual Assessment for Fiscal Year 1997-98 for City of
Costa Mesa Hotels and Motels;"
WHEREAS, on May 19, 1997, and June 2, 1997, at City Hall, City Council
Chambers, 77 Fair Drive, Costa Mesa, California, two public hearings were held
concerning the annual assessment for the business improvement area;
WHEREAS, on May 19, 1997, and June 2, 1997, City Council heard
testimony from the hotel and motel owners on the assessment and no protests
were filed or presented at the public hearings which required determination by City
Council.
WHEREAS, the annual assessment for the business improvement area
pursuant to Streets and Highways Code section 36500 at. seq. has the boundaries
of the area and the boundaries of the benefit zone within the same area as set forth
in Ordinance 95-9 and Exhibit A, attached hereto and incorporated herein by this
reference.
WHEREAS, on May 5, 1997, the City Council of the City of Costa Mesa
approved the report of the Costa Mesa Tourism and Promotion Council and such
report has been considered at the public hearing before this ordinance was adopted.
Section 2. The City Council of the City of Costa Mesa by this ordinance
does hereby levy an annual assessment on businesses within the business
improvement area with the name, "Costa Mesa Tourism & Promotion Council," as
set forth in Exhibits A and B, attached hereto and incorporated herein by this
reference.
Section 3. The City Council of the City of Costa, Mesa does hereby further
find and declare as follows:
(a) The Costa Mesa Tourism & Promotion Council, business improvement
area, is subject to any amendments to the Parking and Business Improvement Area
Law of 1989;
(b) The type or types of improvements and activities to be funded by the
levy of assessments on businesses within the Costa Mesa Tourism & Promotion
Council, business improvement area, are specified in Exhibits A and B, attached
hereto and incorporated herein by this reference, and the improvements to be
acquired for the business improvement area are specified in Exhibits A and B;
(c) The Costa Mesa Tourism & Promotion Council, business improvement
area, assessment shall be levied for one year to pay for all improvements and
activities within the business improvement area as specified by this ordinance,
except where funds are otherwise available;
(d) The method and basis of levying the Costa Mesa Tourism & Promotion
Council, business improvement area, assessment is set forth in Exhibits A and B;
and
Section 2. The City Council of the City of Costa Mesa by this ordinance
does hereby levy an annual assessment on businesses within the business
improvement area with the name, "Costa Mesa Tourism & Promotion Council," as
set forth in Exhibits A and B, attached hereto and incorporated herein by this
reference.
Section 3. The City Council of the City of Costa Mesa does hereby further
find and declare as follows:
(a) The Costa Mesa Tourism & Promotion Council, business improvement
area, is subject to any amendments to the Parking and Business Improvement Area
Law of 1989;
(b) The type or types of improvements and activities to be funded by the
levy of assessments on businesses within the Costa Mesa Tourism & Promotion
Council, business improvement area, are specified in Exhibits A and B, attached
hereto and incorporated herein by this reference, and the improvements to be
acquired for the business improvement area are specified in Exhibits A and B;
(c) The Costa Mesa Tourism & Promotion Council, business improvement
area, assessment shall be levied for one year to pay for all improvements and
activities within the business improvement area as specified by this ordinance,
except where funds are otherwise available;
(d) The method and basis of levying the Costa Mesa Tourism & Promotion
Council, business improvement area, assessment is set forth in Exhibits A and B;
and
(e) New hotel and motel businesses within the business improvement area
and commenced after the effective date of the ordinance will be exempt from the
levy of assessment, as provided in Exhibits A and B.
(f) The revenue from the levy of assessments within the business
improvement area adopted by this ordinance shall not be used to provide
improvements or activities outside the area set forth in Exhibits A and B or for any
purpose other than the purposes specified in the resolution of intention, Resolution
No. 97-40, and modified by City Council at the hearing concerning the
establishment of the area;
(g) Business, patrons of such business, and the property subject to the
business improvement area assessment, are benefited by the improvements and
activities funded by the assessments levied by this ordinance, and in promoting
tourism, the businesses assessed benefit from tourist visits to their businesses;
(h) The assessment levied by this ordinance shall be collected at the same
time and in the same manner as the City of Costa Mesa Transient Occupancy Tax
is collected pursuant to the Costa Mesa Municipal Code;
(p The City Manager or designee is hereby delegated authority by City
Council to enter into the necessary agreements to retain a consultant and/or firm to
administer and effectuate the improvements and activities set forth in the budget
for the Costa Mesa Tourism and Promotion Council, business improvement area, as
set forth in Exhibits A and B; and
(j) The Board for the Costa Mesa Tourism and Promotion Council,
business improvement area, shall cause a report to be prepared and presented to
City Council at the end of the fiscal year for this business improvement area
assessment pursuant to Streets & Highways Code section 36533.
Section 4. Publication.
This Ordinance shall take effect and be in full force and effect thirty (30)
days from and after its passage and, before the expiration of fifteen (15) days after
its passage, shall be published once in the NEWPORT BEACH -COSTA MESA PILOT,
a newspaper of general circulation printed and published in the City of Costa Mesa,
or, in the alternative, the City Clerk may cause to be published a summary of this
Ordinance and a certified copy of the text of this Ordinance shall be posted in the
office of the City Clerk five (5) days prior to the date of adoption of this Ordinance,
and within fifteen (15) days after adoption, the City Clerk shall cause to be
published the aforementioned summary and shall post in the office of the City Clerk
a certified copy of this Ordinance together with the names of the members of the
City Council voting for and against the same. ((��
PASSED AND ADOPTED this �4day of 1997
ATTEST
7,
Deput ity Clerk
A'
the ity of Costa Mesa
APPROVED AS TO FORM:
City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE 1 ss
CITY OF COSTA MESA 1
I, MARY T ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council
of the City of Costa Mesa, hereby certify that the above and foregoing
Ordinance No. 7- Iq was introduced and considered section by section at a regular
meeting of the City Council held on the 19th day of May, 1997, and thereafter passed
and adopted as a whole at a regular meeting of the City Council held on the
2nd day of June, 1997, by the following roll call vote: n
AYES. 13-UFFR IMONR1-1a+,1 �Ckso')l e6am� 5
NOES. IVU N l:
ABSENT NJONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of
the City of Costa Mesa this 3rd day of June, 1997
T.
Deputy City C rk and ex -officio Clerk of
the City Council of the City of Costa Mesa
Exhibit "A"
The BIA benefit zone encompasses the entire City of Costa Mesa boundaries. It is
anticipated that the entire City including businesses and residents will benefit from
increased revenues generated by the activities of the BIA. The following businesses
will be included in the business improvement area which is established pursuant to
Streets and Highways Code Section 36500 at. seq., the businesses commonly
known as:
1 Countryside Inn and Suites
Property Address: 325 and 345 Bristol Street, Costa Mesa
Business Owners: Bruce Ayers
1817 Westminster Avenue
Newport Beach, CA 92660
Donald Ayers, Jr
506 Via Lido Nord
Newport Beach, CA 92658
Property Owner Homes by Ayers
355 Bristol Street, Suite A
Costa Mesa, CA 92626
2. Residence Inn - Costa Mesa
Property Address: 881 Baker Street, Costa Mesa
Business Owner, Residence Inn by Marriott
1 Marriott Way
Washington DC 02258
Property Owner Marriott Residence Inn LTD Partnership
10400 Fernwood Road
Bethesda, MD 20817
3. Red Lion Inn
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner Raymond H. Bingham
400 Main Street
Vancouver. WA 98663
Property Owner- Red Lion Inn - Costa Mesa
P.O Box 1027
Vancouver, WA 98666
4. Holiday Inn
Property Address: 3131 Bristol Street, Costa Mesa
Business Owner• Linquist and Craig Hotels
Property Owner Abbot B. Lipsky
c/o California Inn Management, Inc.
P 0 Box 688
Lawrence, KS 66044
5. Westin South Coast Plaza Hotel
Property Address: 668 Anton Boulevard, Costa Mesa
Business Owner South Coast Westin
Property Owner Secon Properties
c/o South Coast Plaza Hotel
668 Anton Boulevard
Costa Mesa, CA 92626
6. Wyndham Garden Hotel
Property Address: 3350 Avenue of the Arts
Business Owner Amgreen Heritage Hotel Partners Ltd.
Property Owner, 31200 Via Colimas, Suite 202
Westlake Village, CA 91362
7. Marriott Suites
Property Address:
Business Owner
Property Owner
500 Anton Boulevard
J W Marriott, Jr
Marriott Suites, LTD
1 Marriott Way
Washington, DC 20058
Exhibit "B"
ANNUAL REPORT
FOR
FISCAL YEARS
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Submitted by:
THE COSTA MESA TOURISM AND PROMOTION COUNCIL
April 29. 1997
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Submitted by:
THE COSTA MESA TOURISM AND PROMOTION COUNCIL
April 29. 1997
Multi Fasoin.''
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Costa Mesa Tourism 777& Promotion Council
P0. BOX 5071 • Costa Mesa, CA 92628-5071 • 800-399-5499
April 28, 1997
The Honorable City Council
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Dew Council Members:
Thank you for the opportunity to form the Costa Mesa Tourism and Promotion Council. Under
the provisions of the Business Improvement Area (BIA), I submit for your approval the annual
report of the CMTPC.
The "virtual bureau' concept has been most effective. The seven general managers and the
Honorable Gary Monahan and City Manager Allan Roeder have diligently met regularly without
compensation to further the image and economic development of Costa Mesa.
The required contents of our annual report is detailed in Section 36533 of the Streets and
Highway Code. The format is as follows:
I. Any proposed changes in the boundaries of the Business Improvement Area or in
any benefit zones with the area.
The Advisory Board recommends that the entire city continue to be included in the benefit zone.
Further, the Advisory Board recommends that the number of properties included in the boundaries
remain the same. If additional properties wish to participate, they are invited to attend meetings
the year before assessment, be in good standing with the City of Costa Mesa and meet certain
AAA quality standards. The seven major hotels will continue to be assessed the 1% levy on the
sale of hotel overnight guest room stays
IL The improvements and activities to be provided for the Fiscal Year.
The Advisory Board recommends that the 1% assessment levy continue to be used to fund similar
local tourism and promotion activities.
Member Hotels
Red tion Hotel/orange County Airport • The Westin South Coast Plaza • Country Side Inn & suites • Costa Mesa Manion Sums
wyndbam Garden Hotel -orange County Airport • Holiday Inn COAG Me Cnauge County "n • Residence Inn by Martina
e iaw rm u.o m.r n n®wa, ria
Page Two
CMTPC
During the second year, the CMTPC has focused on awareness of Costa Mesa as a destination.
We changed our emphasis from an advertising firm to a public relations firm. We have
accomplished or are in the process of carrying out the following projects
• Meeting Planner International — Hosted a breakfast to emphasize the advantage of
holding meetings in Costa Mesa.
• 8004 Hotline — Contracted a service to answer with live operators. Thev answer
questions about Costa Mesa and mail out brochures.
• Calendar — Established an event calendar for significant art and cultural events in Costa
Mesa as well as important expositions at the Orange County Fairgrounds
• KABC/KTZN — Producing radio "advertorials" with Melody Rogers on KABC's
"Vacation in Your Own Backyard" campaign. The ads will air June and July touting the
arts, shopping, central location, Orange Countv Fair and more
• Airport Contracting for dioramas in John Wavne .Airport to raise awareness of Multi -
Fascinating Costa Mesa to all travelers to the area.
• Vienna Philharmonic Orchestra — Presented a proclamation and key from the City of
Costa Mesa to the Orchestra following their concert in the Performing Arts Center.
• Partnership — Participating with the cities of Huntington Beach, Newport Beach and
Irvine as Southern California Coastal Resorts, who hosted a press tour May 1-4, 1997
• Web site — Producing an enticing displav of Costa Mesa s amenities on the current city s
site.
• Video/Photography — Producing a complimentary video and additional photographs of
the city to use with press releases and the web site.
• Press Release — Aggressively issuing press releases on a national distribution basis that
highlights Costa Mesa's qualities.
• Amenities Designing and updating new and current promotional items.
• Summer campaign — Producing one final media campaign to attract visitors to Costa
Mesa this calendar year.
Page Three
CMTPC
III. An estimate of the cost of providing the activities for the fiscal year. The estimated
amount of the assessment to be levied against the businesses for the fiscal year. The
amount of surplus or deficit or revenue carried over from the previous fiscal year.
The advisory board has prepared the following financial overview which details fiscal year 1996-
1997 and the proposed fiscal year 1997-1998:
EXPENSES
Media Campaign
$205,790
Yew 2
Year 3
30,000
0
FY 1996-97
FY 1997-98
REVENUES
Brochures & Collateral Material
ActfPml
Proiected
Trade Show Booth & Representation
July
15,000
$31,890
$33,485
August
TOTAL
36,107
37,912
September
$39,482
37,949
39,846
October
33,027
34,678
November
35,451
37,224
December
30,367
31,885
January
37,125
38,981
February
Est
33,000
34,650
Much
Est
33,500
35,175
April
Est
28,000
29,450
May
Est
30,000
31,450
June
Est
35 000
36350
$401,416
$421,487
EXPENSES
Media Campaign
$205,790
$270,000
Video Production & Distribution
30,000
0
Media Relations & Familiarization Trip
85,826
98,000
Brochures & Collateral Material
16,369
50,000
Trade Show Booth & Representation
8,646
15,000
Administrative & General Expenses
15303
20y00
TOTAL
$361,934
$453,000
Year -End Surplus
$39,482
$7,969
Page Four
CMTPC
Budget Expense narrative detail for FY 97-98:
Media Campaign: Creative Development and Media Buy
A Campaign will be developed which will continue to establish the positioning and name
recognition of Costa Mesa as an attractive destination providing desirable amenities, value
and easy accessability These campaigns would be utilized in key feeder markets of
leisure travelers to Orange County with emphasis on shopping, attractions, cultural
activities, holiday and special events. We will also review support type advertising with
travel agents and meeting planners.
ESTIMATED FY '97-'98 EXPENSE - $270,000.
Media relations and familiarization trips
We plan to continue to work with our public relations firm and gain national exposure
through press releases and special events. We also plan to hold a familiarization trip for
travel agents and/or press. This amount includes the monthly retainer fee for our public
relations firm.
ESTIMATED FY 97-98 EXPENSE - $98,000
Brochures and Collateral Materials
We plan to update our current brochure with additional photographs and change of names
of member hotels. These brochures continue to be distributed to meeting planners, travel
agents and conference attendees.
ESTIMATED FY 97-98 EXPENSE - $50,000
Trade Show Booth and Representation
We plan on continuing to produce promotional materials and participate in local trade
shows and have sufficient display materials for distinctive presentation.
ESTIMATED FY 97-98 EXPENSE - $15,000
Administrative and General Expenses
We plan on continuing to have our Answer Network and brochure distribution facility
We also anticipate additional inquiries due to our press releases and advertising
campaigns. This category includes our accounting fees and insurance.
ESTIMATED FY 97-98 EXPENSE - $20,000
Page Five
CMTPC
The entire advisory board has supported and enthusiastically worked for the success of the
CMTPC. Advisory board members Gary Monahan and Allan Roeder added their unique
perspective and eminent assistance. We appreciate the opportunity given us by the City Council
to establish the Tourism and Promotion Council and seek continued support.
Respectfully,
,,ten` did'
Emmett Steed, President
Costa Mesa Tourism and Promotion Council
ES:mh
PROMOTIONAL
CAMPAIGNS
Multi Fmcinating!'
Qiv0'es,
Costa Mesa Tourism A Promotion Council
P 0. Box 5071 • Costa Mesa, CA 92628-5071 •800-399-5499
KABC - Radio
Costa Mesa Tourism and Promotion Council
:60 June/July 1997
P-ss-tt! I've got a secret It's a great weekend getaway
nestled between LA and San Diego. It's a hideaway cozy
enough for a romantic weekend, or an activity -filled family trip.
20 minutes from Disneyland, and close to the beach, it's home
to superb hotels, award-winning restaurants, golfing galore,
day spas, performing arts, and shopping for days!!!! What is this
multi -fascinating mecca? ...Are you ready? ... It's Costa Mesa!
That's right - Costa Mesa! You've probably buzzed by on the
405 Freeway, but never thought of staying. Think of this -
shopping at South Coast Plaza, Crystal Court, Triangle Square,
the LAB: Anti -Mall and Metro Point South Coast; terrific
restaurants to suit every taste, the Orange County Performing
Arts Center, South Coast Repertory Theater, art galleries - the
list goes on! Why not visit Southern California's best -kept
secret? Make Costa Mesa your next weekend destination.
Call 1-800-399-5499 for details. That's 1-800-399-5499
Member Hotels
Red tion Hotel/Orange County Auprt • The Westin South Cues[ Plan' Country Side Inn 9. Suites • Cosm Mesa Marriott Suites
Wyndham Garden Hotel -Orange County Atrpon • Holiday Inn Costa Mesa/Omnge County Airport • Residence Inn by Marriott
ennmr®weno>n.�a
California's "Must See" bights
(NAPS)—One of the boot -k -pt
setas in California is the city of
Costa Mesa, in Southern Califor-
nia. Located between Huntington
Beach and Newport Beach—end
about midway between Los
The db
tions and
ping and restaurants to suit every
tests. The amhinatim of metro-
politan excitement and baeuh-town
ambiance books" vialters from
ssulmd theMerid.
A range of quality hotels,
including the Doubletree Hotel/
Creep County Aiiyort (formerly
the Red lose Hot. , The Westin
South Coast Pias-. CArutry Side
Inn As Suits-, the Costa Mesa
M-.r(ek4 Suites, Wvudham Oar -
County Airport, and the Resi-
dence Inn by Marriott, offer
unparalleled accommodations.
Here ma tips on what to sea and
do when visiting.
You might start with a night at
the theater. Spjoywmid—OwnW
entertainers and musical. dace -
and opera productions at the in-
tereatimmily-aeolatmed Orange
County performing Arte Center,
which a'Cemtly hated the Pram
Pia-Himmenic Orchestra in om of
the orchesta'a two U.S. venues.
Or experience contemporary dra-
ma at the Tony Award-winning
South Coast Repertory Theater
across the stmt. The city is also
home to many fine art and phdn-
raphy generics.
The bdettutlona% aeermee
Crimps Ginty Performing Arts
Center to located In Costs Ness,
cadtamla.
Per those wis" to "shop till
they drop; coats Mesa offers an
exciting variety of shopping deed-
ned®s. Far example. with over 9
million square feet, the elegant
South Cent Placa is an indom/ecb
door retail and dining osater that
attracts visitors, royalty Ind
rdetaities from around the world
cad ohms a range of rheicee for all
testes sad desires.
These wanting some much.
den-ved pampering as find it at
the coca's gee day span.
The city's moderate climate,
em,W worldwide, banner; at about
70"F. for most of the year, making
Por a great day at the beach, golf-
ing, or visiting other Southern
chubmis attractions -
Free Brochure
For a free brnehure about visit-
ing Costa Mee&, call toll fres
14W -999-U99.
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Excellent Value!
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. ter an v improve
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Center and improve stints, parking
and utilities However, the company
has agreed to guarantee about half of
the nearly $400 million in bonds that
Anaheim must issue to fund the lion's
share of the improvements. The
HEARD ON tranche of debt, which means a slab
or a slice.
THE BEAT On to the chmrette. That's Is
TOURISM Disney -speak for a brainstorming
session that hatched the idea for a
By Marla Dlekaman Califomia-themed park. For the
uninitiated, chorreffe literally means
a handcart or wheelbarrow. It came to symbolize a frenetic
creative push back in the 19th century, when students at the &ole
des Brow, Art$ to Paris would rush to toss their final projects onto a
charrette used by the school to collect work for grading.
As part of the expansion, Disney plans to build an esplanade,
which a really lust another way to say promenade. The giant,
tree -tined public space will be constructed between California
Adventure and -Disneyland. Patrons will be able to purchase tickets
or stroll to any number of shops and restaurants planned along the
corridor.
Quasimodo and friends should feel right at home.
Costa Mesa Invites Arizonans to Cool It
CoslaMesa in July isn't exactly the epitome ofcool, unless you
happen to live in Arlmna The Costa Mesa To urima and Promotion
Council has cooked up a 60-secoZn ratio spot aimed at the PTaenix
mazket that urges the sweltering masses to chill out with visit to
Costa Mesa
IVs just the latest promotion by the Costa Mass group, one of the
state's first"virtual tourism bureaus." The council was formed in
August 1995 after several Costa Mesa hotels worked with the city
to form a Business Improvement Area and agreed to devote a
portion of their room revenue—$275,000 in the first year alone—to
fund the project.
The council has no staff or offices and few administrative costs.
It's run by a volunteer alliance of hotel general managers who
have funneled virtually 100% of the budget into promotion and
advertising.
"We have found a most cost-effective approach to promoting the
city by eliminating the, need for executivesmf(4nd related
and has set up
CA,
be as , at
m -w ¢mq na
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Bacoms
Costa Mesa makes case as travel base
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